CDO Whisperer Brett Jefferson on Securitization Markets and TruPS CDO Relics

This interview with Brett Jefferson discusses trust preferred CDOs, why they can provide such great opportunities, and how Brett’s fund capitalizes on this niche market. Brett and Jack also discuss the private credit market, the risks and benefits of securitization, the performance of the collateralized loan market, and much more. Recorded on September 10, 2024. Follow Jack Farley on Twitter https://twitter.com/JackFarley96 Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance Follow Blockworks on Twitter https://twitter.com/Blockworks_ Follow the new host of Forward Guidance, Felix Jauvin https://x.com/fejau_inc Jack’s upcoming podcast, Monetary Matters: https://www.youtube.com/@Monetary-Matters __ Timestamps: (00:00) Introduction (00:59) Trust Preferred CDOs (08:44) Starting Hildene Capital Management (10:44) Buying Trust Preferred CDOs (13:22) Deferred Payments (20:13) Trust Preferreds Regulated Out (23:15) Philadelphia Fed Paper (27:38) Taking Advantage Of Inefficient Markets (34:33) Private Credit (37:55) Hildene's Market Niche (44:11) The Structured Credit Market (51:44) Structured Security Correlations (55:20) Credit Market Risks (01:00:00) The Realities Of Private Credit (01:08:27) TruPS CDOs (01:11:03) Private Credit CLO Market (01:14:48) Risks & Rewards (01:18:58) Collateralized Loan Market Performance (01:25:28) Closing __ Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.